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Lyft Pays Price for Success in Rejected Driver Pay Accord

  • Judge says $12 million payout shortchanges California drivers
  • Company, drivers encouraged by judge to draft new agreement
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Lyft Inc. became a victim of its own success Thursday when a judge rejected its bid to make peace with its drivers for offering them a tiny sliver of the company’s exploding revenue.

Now, the ride-sharing service is back in a courtroom showdown with its workforce similar to larger rival Uber Technologies Inc.’s fight against its California drivers set for a trial for June. The competing startups are on the front lines of a nationwide battle over whether the business model used in the so-called sharing economy systematically exploits workers.